UPDATE: Williams Initiates Pepco at Buy

Williams is out with its report today on Pepco

, initiating POM at Buy. In a note to clients, Williams writes, "We initiate coverage on Pepco Holdings, Inc. with a Buy investment rating and $21.00 target price on June 21, 2011 at a price of $19.46. With the stock currently trading at 13.4x our 2013 recurring EPS estimate, 1.0x our 2011 book value estimate, and at a material premium indicated dividend yield, we believe that there is material capital appreciation potential in POM shares as reflected in likely significant EPS and cash flow growth over the next several years, in our view." Shares of POM closed Monday at $19.46.